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December 15, 2023

This is the Future of Fund Admin

This is the Future of Fund Admin

Congratulations to our friends at Tokeny and Apex Group Ltd . The next step is folks like Google or AWS or Data Bricks will buy a fund admin...this will happen sooner than later as smart cloud becomes a reality and fund admin is separated between fiduciary actor and process manager/data manager.

We believe there will be meaningful transformation around Data usage, storage, and process automation that transforms the fund admin markets. There is a bias for pushing too much compute function on chain with smart contracts. This creates unnecessary dependency on chains. There must be resiliency as layer 1 chains will die (think Symbiont) and those who built out processes native to symbiont lost that investment. The regulators will also demand this resiliency. We should use symbolic logic structures as the organizing principle for what belongs on chain and what does not.

If you go back to Boolean algebra and the goal to move logical arguments to a purely symbolic and then with Claude Shannon’s insights into a binary variable began with the symbolic argument with four types of functions, 1) relationships, 2) variables, 3) operations, and 4) constants. Using this as a beginning point for where we think compute should exist, we think operations and constants belong at the enterprise level or above a chain or a multi chain environment and variables and relationships belong at the smart contract level. This creates the ability to instantaneously re-populate to another layer 1 for a financial instrument if the native layer 1 goes down.

Compute at the enterprise level can be fed from the cloud, and the compute on chain can use cross enterprise process automation with a triple ledger entry solution, where you have consensus on the calculation (block, etc). These rails can solve many of the issues around scaling back office and the intersection of data reconciliation. ZK proofs using anchors and compute at the edge will drive fund admin for alts, where Inveniam proof of process ties together compute, and proves provenance of where the data that drove compute came from.

Inside Google Cloud, or Amazon Web Services (AWS) or Azure or G42 this provides a compelling full stack solution, for smart cloud data feeding the variables on chain, that the smart contract then drives to a defined relationship (next compute or report in line, with visible or provable proof of process). This is a smart cloud connected to triple ledger solutions together that power every single step of the enterprise level or smart contract level calculation for an alt as a comprehensive stack, powering many compute/reporting tools but a single data solution. This is the future of Fund Admin.

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